Green steel DRI deals continue as Vale joins ArcelorMittal, SSAB in lowering emissions

Technology supplier Midrex's latest collaboration accord in low emissions steel with Brazilian miner Vale builds on increasing steel market interest in working with direct reduction iron (DRI) providers and hydrogen.

Midrex Technologies and Tenova HYL believe their DRI technology — found in modules in the Americas, the Middle East and other natural gas-rich areas — can run solely on hydrogen, and in combinations of hydrogen with the reformed natural gas they rely on now.

The companies are offering advancements to tailor iron metallics qualities such as carbon, phosphorous and silica, and help steel producers ramp up the qualities and efficiencies from using DRI in their operations.

Related coverage: Vale, Kobe Steel, Mitsui plan low-carbon steelmaking technologies venture

The steel industry is among the largest global contributors of greenhouse gas (GHG) emissions, in a range of 7-9% of total worldwide emissions, because of the significant reliance on coal for processing iron.

"We are excited to provide Midrex technology using both natural gas and hydrogen to help steelmakers mitigate [carbon dioxide] emissions and transition from aging blast furnace technology," Midrex CEO Stephen Montague said in a statement July 13, after the partnership with Vale, Mitsui & Co., and Midrex parent company Kobe Steel was announced.

In the automotive and building sectors, the goal of a net 2050 carbon-free target for steel materials is leading companies into a competitive pursuit to lower costs and viability.

Carbon dioxide emissions from the DRI process using natural gas or hydrogen, and then melted in electric arc furnaces, are typically much lower than going down the blast furnace steel casting route, according to data from Midrex and Tenova HYL.

Steel companies in Europe such as ArcelorMittal, SSAB and Salzgitter are testing making steel with hydrogen using Tenova HYL and Midrex technology. Pilot plants are working on the assumption that hydrogen performs well, and the way it is made does not affect its performance in the steelmaking process, allowing natural gas-based blue hydrogen, and electrolytic green hydrogen, among others, to be available for use.

Tenova HYL's latest offering will allow for the production of a very low impurity, high carbon direct reduced iron (DRI) similar to pig iron from a blast furnace, with a melting module attached to a DRI unit. Tenova HYL sees its high purity, carbon iron metallics using downstream integrated steelmaking facilities, rather than needing an electric arc furnace.

Steel mills remain interested in lowering emissions to meet demand from stakeholders and suppliers, especially in Europe, which has an emissions trading scheme, while others may be more skeptical.

Renewables-based electrolytic hydrogen's high production costs not withstanding, the environmental, mining and renewable energy factors among others are complex.

Moving steel output to a dependence on more on high-grade iron ore pellets fueled by hydrogen reduction may throw up new issues and high costs. The added uncertainty may cause an industry investment gap for traditional steelmaking facilities until there is more clarity on the return on investments, a steel strategist said.

The energy from PCI and coking coal for ironmaking being replaced by hydrogen is an example of a very high alternative cost which needs to be absorbed and may rely on subsidies or other financial support, he said.